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The WACC is the return required by all of the firm's investors To calculate the WACC, we need to know the return required by each

The WACC is the return required by all of the firm's investors

To calculate the WACC, we need to know the return required by each class of investors, and the percentage of the firm that is financed by each class.

How do we choose the weights of each component of the capital structure?

1. Historical weights

2. Target market based weights

3. Average target weights

4. No weights

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